eClerx September quarter revenue up 21%, net profit up 32%; buyback proposed
ECLERX · price
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On the reaction day the stock moved 8.0 pts more than Nifty Smallcap 250 and 6.7 pts more than its Business Process Outsourcing (BPO)/ Knowledge Process Outsourcing (KPO) peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Consolidated September-quarter revenue rose 21% to Rs 10,048.51 million and net profit rose 32% to Rs 1,834.60 million. The operating margin before depreciation, interest and tax improved to about 30% from 28%. Half-year revenue and net profit rose 20% and 29%. The board approved a buyback of up to Rs 3,000 million at Rs 4,500 per share, pending shareholder approval. Auditors raised no material concern.
Strong growth and margin gains may support the stock. The buyback could aid per-share value but will use cash and still needs shareholder approval.